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HomeMy WebLinkAboutAGENDA REPORT 2001 0905 CC REG ITEM 11N�O�8 . (2p) (A LOC11- f �1► 4 C j 17,r C e17,- C, �j f t-q of ACTION, AppY'o e-6 6�, 6 MOORPARK CITY COUNCIL AGENDA REPORT TO: The Honorable City Council FROM: Mary K. Lindley, Director of Community Services tk— DATE: August 20, 2001 (CC Meeting of September 5, 2001) SUBJECT: Consider FY 2001/02 Budget Amendment for Past Electrical Use at Arroyo Vista Community Park SUMMARY The City Council is being asked to adopt the attached resolution amending the FY 2001/02 Budget to appropriate funds to pay for past use of electricity at Arroyo Vista Community Park (AVCP). The past electrical use took place prior to the installation of a second meter and as a result, the City was not previously charged for its use. . BACKGROUND When AVCP was first constructed in 1993, all of its electrical needs were supported from one Edison meter. Subsequently to 1993, the City installed ballfield lights, a restroom /concession facility, and tennis court lights. While it is difficult to fully explain how it happened, when these additional electrical amenities were installed they were not connected to the existing meter. Additionally, a new meter to service these amenities was not installed. As a result, the City was using unmetered electricity and not being billed. With the initial construction of the Park, the City had plans to include ballfield lights, tennis court lights, a pool facility and other amenities that would require additional electrical use. Space was made in the electrical box to install additional meters. In fact the space was labeled identifying the future amenities and Edison provided power from its transformer to the vacant meter space in the City's electrical box. Edison was under the understanding that the City would be providing for \ \MOR_PRI_SERV \home folders \MLindley \PARKS \AVCP Edison Payment.doc AVCP Edison Payment Page 2 additional electrical needs and adding a second meter shortly after the opening of the Park. As a result of limited funds, the City opted to phase in these additional amenities and not until 1995 were the ballfield lights installed. By that time, it appears that the City had forgotten that a second meter was needed. Since the space was already powered, the various contractors who built the aforementioned lighted amenities were able to secure power without a meter. With the completion of the eight lighted tennis courts (September 1999) the City expected to see an increase in the electrical billing for AVCP. When it became clear that no measurable billing increase had occurred, the City contacted Edison to report the situation. DISCUSSION From the time the City notified Edison, the City and Edison representatives have been negotiating a fair and equitable method for calculating past electrical use that covers a period between 1995, when the ballfield lights were installed, and subsequently the restroom /concession facility, and in 1999, the lighted tennis courts, through October 2000. The final figure was based on actual use during a test period between October 2000 and December 2000, and an adjustment factor for daylight savings and smaller initial softball league and youth sports participation numbers. In March 2001, Edison submitted a bill for past use in the amount of $72,817.43. From the City's perspective, this amount seemed high and Edison agreed to recalculate it to reduce the City's financial burden. The final bill submitted by Edison was in the amount of $62,071.95. Additionally, Edison offered a payment plan that consists of an initial 10 percent payment up -front (which the City recently paid) and the remaining balance will be paid monthly, spread out over a three year period. In order to pay for this previously unexpected expenditure in FY 2001/02, the City needs to amend its budget to appropriate a total of $24,829 ($6,208 [10 %] plus $1,551.80 for twelve 0 W, AVCP Edison Payment Page 3 months) . It is recommended that the funds be transferred from the City's General Fund Reserve Balance. In FY 2002/03 and 2003/04, the City will need to budget $18,622 each year to fully pay back the previously unbilled electrical use. STAFF RECOMMENDATION (Roll Call Vote) Adopt Resolution No. 2001- , amending the FY 2001/02 budget to appropriate $24,829 from the General Fund Reserve Balance to the Community Services Park Budget to pay for previously unbilled electrical use at AVCP. GO a AVCP Edison Payment Page 4 RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FY 2001/02 BUDGET FOR ARROYO VISTA COMMUNITY PARK PAST ELECTRICAL USE BY APPROPRIATING $24,829 FROM THE GENERAL FUND RESERVE BALANCE (1000), TO THE PARK MAINTENANCE EXPENDITURE BUDGET (2400). WHEREAS, on June 20, 2001, the City Council adopted the FY 2001/02 Budget; and WHEREAS, on September 5, 2001, staff presented the Council with a report which requests the appropriation of $24,829 from the General Fund Reserve Balance, for past electrical use at AVCP; and WHEREAS, Exhibit "A" hereof describes said budget amendment and its resultant impacts to the budget line items. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES RESOLVE AS FOLLOWS: SECTION 1. A budget amendment to allocate $24,829 from the General Fund Reserve, and appropriate the same for electrical payments, as more particularly described in Exhibit "A" attached hereto is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of the resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 5th day of September, 2001. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk AVCP Edison Payment Page S Attachment A Resolution No. 2001- EXHIBIT A Budget Revision A. Fund Allocation: Fund No. Fund Name Amount 1000.5500 General Fund Balance 24,829.00 $24,829.00 $24,829.00 B. Budget Appropriation: BUDGET NUMBER BUDGETED REVISION NEW BUDGET 2400.7800.7817.9413 $0.00 $24,829.00 $24,829.00 Approved to Form: i r" MU �' t.:, ti